The rating agency Moody’s has maintained France’s rating at Aa2, but has worsened the prospects of the French country, from stable to negative. The firm justifies this decision by saying that “the fiscal deterioration has gone beyond what was expected,” as indicated in a statement published this Friday.
“The fiscal deterioration that we have already seen goes beyond our expectations and contrasts with similar governments in similar countries, which are trying to consolidate their public finances. The risk in France’s credit profile is amplified by a political and institutional context that does not favors policies aimed at preserving the sustainability of public finances. As a result, budget management is worse than we had previously warned,” explains Moody’s.
Regarding maintaining the grade at Aa2, the agency highlights the wealth of the French economy and its diversification.
France’s turn, which has gone from being a debt aristocrat to sitting with the periphery, is reflected in its bonds. The ten-year French bond yields 3.05%, while the yield on Spanish debt stands at 3.02%, slightly lower.
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